Bombay High Court
Pr.Commissioner Of Income Tax-3 vs M/S Shapoorji Pallonji & Co.Ltd on 6 March, 2019
Bench: Akil Kureshi, M.S. Sanklecha
3. OS ITXA 1843-16.doc
R.M. AMBERKAR
(Private Secretary)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
O.O.C.J.
INCOME TAX APPEAL NO. 1843 OF 2016
Pr. Commissioner of Income Tax 3 - Mumbai .. Appellant
Versus
M/s. Shapoorji Pallonji & Co Ltd .. Respondent
...................
Mr. Sham Walve for the Appellant
Mr. Divesh Chawla i/by Atul Jasani for the Respondent
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CORAM : AKIL KURESHI &
M.S. SANKLECHA, JJ.
DATE : MARCH 6, 2019.
P.C.:
1. This appeal is filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal ("the Tribunal"
for short). Following questions are presented for our consideration:-
"(i) Whether on the facts and in the circumstances of the case and in law, the Tribunal has erred in not considering the fact that the amount of disallowance u/s. 14A has to be computed as per Rule 8D when the computation of the assessee was not found to be correct and as held in the order of the Hon'ble High Court in the case of M/s. Godrej & Boyce Mfg. Co. Ltd?
(ii) Whether on the facts and in the circumstances of the case 1 of 4 ::: Uploaded on - 08/03/2019 ::: Downloaded on - 14/03/2019 00:05:59 :::
3. OS ITXA 1843-16.doc and in law, the Tribunal was justified in deleting the disallowance of foreign travelling expenses of Rs.
10,29,082/- without appreciating the fact that the expenditure incurred on the accompanying wife on foreign tour cannot be regarded as expenditure laid out wholly and exclusively for business purposes and cannot be said that the wife has contributed directly to the business of the assessee concerned therein?
(iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of Rs. 7,00,094/- u/S. 36(1)(va) of the Income Tax Act, 1961 without appreciating the fact that when the employer fails to credit the employee's contribution deducted from their salaries or wages by the due date in the account of the relevant fund, the same is to be taxed as income of the employer?"
2. Question No. (i) arises out of the Assessing Officer's order making disallowance of expenditure incurred by the respondent assessee under Section 14A of the Income Tax Act, 1961 ("the Act" for short) read with Rule 8D. The CIT(A) restricted such disallowance to Rs. 1.12 crore upon which the issue reached the Tribunal. The Tribunal confirmed the order of the CIT(A). This was inter alia on the ground that the Assessing Officer had not stated why he did not agree with the assessee's accounts for allocation of expenditure and further that the assessee had sufficient interest free funds to
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3. OS ITXA 1843-16.doc make such investments. This issue is squarely covered by the decision of this Court in the case of HDFC Bank Ltd Vs. Deputy CIT (Bom)1. No question of law, therefore, arises.
3. The second question pertains to the Revenue's objection to the respondent assessee company bearing the expenditure of foreign travel of the wife of the chairman and claimed it as allowable expenditure. The Tribunal, while confirming the deletion made by the CIT(A), noted that the chairman in question was aged about 80 years and that he needed to be accompanied by family member for his medical ground. It was also noted that the wife herself was a director of the assessee company. Such being the facts, we do not find any error in the view of the Tribunal. No question of law, therefore, arises.
4. The last question pertains to disallowance made by the Assessing Officer for non deposit of employee's contribution to provident fund before the due date. This issue is covered by the judgment of this Court in the case of CIT Vs. Ghatge 1 (2016) 383 ITR 529 (Bom) 3 of 4 ::: Uploaded on - 08/03/2019 ::: Downloaded on - 14/03/2019 00:05:59 :::
3. OS ITXA 1843-16.doc Patil Transports Ltd2
5. In view of the above, the appeal is dismissed. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ] 2 [2014] 368 ITR 749 (Bom) 4 of 4 ::: Uploaded on - 08/03/2019 ::: Downloaded on - 14/03/2019 00:05:59 :::